BP and Shell shares declined after oil prices weakened amid hopes of a possible Iran war ceasefire agreement. Melrose Industries shares also fell following a chemical incident at its California aerospace manufacturing facility. The latest market movements reflect growing sensitivity to Middle East developments and industrial disruptions.
Shares of Melrose Industries fell after a chemical incident at one of its California plants prompted evacuations in the surrounding area. The company confirmed the event but provided no further details. Investors reacted cautiously to the safety concerns and potential operational disruptions. Melrose said Tuesday that specialists and local authorities have been working to stabilize the situation, with positive progress made over the past few days.
Shares of oil giants BP and Shell slid as Brent crude oil prices dropped from $107 to below $96 a barrel amid optimism over talks to end the US-Israel conflict with Iran. BP shares fell 1.3% to 544.4p, while Shell declined 1.1% to 3,173.5p. The recent 48-day ceasefire and ongoing negotiations in Qatar have boosted market hopes for de-escalation. However, US strikes on southern Iran have kept tensions elevated. Deutsche Bank analysts noted growing optimism that the conflict may be nearing an end, though the oil majors’ earnings momentum could weaken if crude prices remain under pressure.
Pop star Kesha has sold her ultramodern Los Angeles mansion for $6.7 million, two years after listing the property. The deal marks the end of a prolonged selling period for the architecturally distinctive home, reflecting sustained interest in high-end L.A. real estate tied to celebrity ownership. The sale underscores demand dynamics in the luxury housing market amid ongoing changes in lifestyle preferences.
Treasury bond yields have surged amid expectations that the Federal Reserve will raise interest rates to combat inflation sparked by the U.S.-Iran conflict. Since 1999, the S&P 500 has historically fallen after a new rate-hike cycle begins, despite a 9% year-to-date gain this year. Rising yields reflect stronger inflation pressures, with consumer price inflation hitting 3.8% in April and projected to accelerate further. Treasury yields across maturities climbed significantly, with the 30-year yield at a 19-year high. This bond market sell-off signals investor concern over tighter monetary policy, raising alarm for potential stock market volatility ahead.
Stock futures rose Tuesday as traders weighed the prospects of a potential U.S-Iran deal being reached to end the war. Dow Jones Industrial Average futures popped 234 points, or 0.5%. S&P 500 futures gained 0.7%, and Nasdaq-100 futures advanced 1.1%. U.S. stock markets were closed Monday due to the Memorial Day holiday.
President Donald Trump said Monday that talks with Iran to end the war were “proceeding nicely.” That said, he did warn the U.S. could go on the offensive if negotiations break down.
U.S.-listed shares of Ferrari fell 3% in the premarket after the luxury vehicle maker unveiled its first-ever EV. The Luce is priced around $640,000.
“Ultimately many fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand, which has modelled itself around classic design and raw, combustion-engine power,” Michael Field, chief equity strategist at Morningstar, told CNBC by email.
Brent crude oil prices rose on Tuesday as US strikes in southern Iran and President Donald Trump’s mixed messaging on the negotiations between Tehran and Washington kept traders on edge. International benchmark Brent crude gained 3% to $99.03 a barrel by 7:59 a.m. ET. US West Texas Intermediate futures for July were trading 4% lower at $92.73 per barrel compared with Friday’s close. There was no WTI price settlement on Monday due to the US Memorial Day holiday.
Treasury yields fell on Tuesday as bond markets returned from a Memorial Day break to bolstered hopes of a Middle East peace deal, even as the U.S. military conducted fresh strikes on Iran. The yield on the 10-year US Treasury note, the key benchmark for U.S. government borrowing, moved lower by more than 8 basis points to 4.485%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, dropped 7 basis points to 4.057%. The longer-dated 30-year Treasury bond yield declined more than 7 basis points to 5.009%.
Shares of British energy major BP fell sharply on Tuesday after the board announced it had removed Chairman Albert Manifold in a surprise move. The decision to oust Manifold with immediate effect followed “serious concerns” related to governance standards, oversight and conduct, the company said in a statement, without elaborating.
The Roundhill Memory ETF gained 12% on Tuesday and reached a new 52-week high. The fund, which is the fastest growing in years has surged 59% over the past month. Tuesday’s move higher was supported by Micron Technology and Sandisk, which advanced 14% and 7%, respectively.
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